Plastic Waste Shipment (EU)

On 22nd December 2020 the EU adopted new rules on the export, import and intra-EU shipment of plastic waste – here. [these changes are not yet in the CONSLEG consolidated law version uploaded on Cardinal Environment EHS Legislation Registers & Checklist, and the updated law will be added shortly]

The new rules ban the export of plastic waste from the EU to non-OECD countries, except for clean plastic waste sent for recycling. Exporting plastic waste from the EU to OECD countries and imports in the EU will also be more strictly controlled.

The new rules entered into force on 1 January 2021. They apply to exports, imports and intra-EU shipments of plastic waste: [see below per the EU news announcement]

Exports from the EU

• Exporting hazardous plastic waste and plastic waste that is hard to recycle from the EU to non-OECD countries will be banned.

• Exporting clean, non-hazardous waste (which is destined for recycling) from the EU to non-OECD countries will only be authorised under specific conditions. The importing country must indicate which rules apply to such imports to the European Commission. The export from the EU will then only be allowed under the conditions laid down by the importing country. For countries which do not provide information on their legal regime, the “prior notification and consent procedure” will apply.

• Exporting hazardous plastic waste and plastic waste that is hard to recycle from the EU to OECD countries will be subject to the “prior notification and consent procedure”. Under this procedure, both the importing and exporting country must authorise the shipment.

Imports into the EU

• Importing hazardous plastic waste and plastic waste that is hard to recycle into the EU from third countries will be subject to the “prior notification and consent procedure”. Under this procedure, both the importing and exporting country must authorise the shipment.

Intra-EU shipments

• The “prior notification and consent procedure” will also apply to intra-EU shipments of hazardous plastic waste, and of non-hazardous plastic waste that is difficult to recycle.

• All intra-EU shipments of non-hazardous waste for recovery will be exempt from these new controls. 

These new rules amend the EU’s Waste Shipment Regulation (EU Waste Transhipment Regulation) and implement the decision taken by 187 countries in May 2019 at the Conference of the Parties of the Basel Convention. This Basel decision set up a global regime governing international trade in plastic waste for the first time, by including new entries on plastic waste in the Annexes of the Convention.

The EU ban on exports outside the OECD of plastic waste that is difficult to recycle, goes further than the requirements of the Basel Convention.

[Note: the UK is outside the EU, it did update its International Waste Shipment Regulation to incorporate a prior notification and consent process effective 1st Jan 2021 – see Cardinal Environment Registers and Checklists – but it did not implement a ban on exports of plastic waste to non-OECD. DEFRA – The government had “pledged to ban the export of all plastic waste to non-OECD countries”, but no timetable for action exists. Research is commissioned to better understand existing UK plastic waste recycling capacity and DEFRA would consult in due course on how to deliver its manifesto commitments.]

Happy New Year!

Here we go, 1st Jan 2021, and the start of the new rules for EU-UK trade.

(new 1st Jan) GB Cardinal Environment EHS Registers & Checklists (ENV) are being uploaded in alphabetical order, some have already been uploaded, uploading is taking place today, and will take a further 5-7 calendar days to complete. Any questions, please email me.

Northern Ireland Cardinal Environment EHS Registers & Checklists (ENV) will be next.

The December Email Alert will be issued on Monday 4th Jan, so look out for it in your inboxes on that day.

A couple of new items to note :

(1) the UK government issued a 31st Dec update (159 pages with worked examples) to its border model – here.

(2) the UK government issued a 3 month temporary approach to sending parcels to Northern Ireland from Britain – here.

(3) the UK government issued an unofficial list of waste codes for international shipping (note the List of Waste codes for domestic movement is found in WM3) – here.

(4) the UK government updated more of its guidance (notably data) to incorporate the EU-UK trade and cooperation agreement – the Brexit Guidance List in Cardinal Environment EHS Registers & Checklists.

(5) Stena, who manage Holyhead port, report they turned away 6 freight lorries carrying goods to Ireland so far this morning because the Ireland-required Pre-boarding Notification (PBN) had not been completed – this Blog does not focus on customs – the Irish Revenue link is here.

COVID-19 EA Regulatory Position Statements (England)

I posted before about the Environment Agency’s Regulatory Position Statements (RPS), and the fact that the Agency is publishing RPS for the COVID-19 crisis.

Yesterday 21st April, the EA has issued further COVID-19 RPS. Here

You will note there are now quite a few of them.

COVID-19 Environment Agency (England)

The Environment Agency (EA) issues Regulatory Position Statements (RPSs). These explain the situations and conditions when an environmental permit is not required.

The EA issued temporary RPSs last year in the run up to the Brexit Exit days.

The EA has now issued 3 temporary RPSs to deal with COVID-19 – here.

Two address waste issues, and one deals with water sampling.

The exceeding waste storage limits RPS is similar to the temporary Brexit RPS that was issued last year.

The full list of EA Regulatory Position Statements is – here.

COVID-19 Waste Shipment (EU)

On 16 March 2020, the Commission adopted Guidelines for border management measures to protect health and ensure the availability of goods and essential services.

On this basis, on 23 March 2020, the Commission adopted a Communication on the implementation of the Green Lanes under the Guidelines with specific recommendations designed to preserve the EU-wide operation of supply chains and ensure the functioning of the Single Market for goods, wherever internal border controls exist or have been introduced.

I blog posted about this at the time.

The European Commission issued (30th March) a Communication explicitly clarifying that the principles relating to transport of goods apply mutatis mutandis to shipments of waste.

This document is here.

Environmental Taxes (UK)

The Finance Bill 2020 increases existing environmental taxes, amends the carbon emissions tax that is not commenced, and provides for a new packaging tax.

Vehicle Excise and Registration Tax

The government announced at Budget 2017 it would introduce a new regime for calculating a car’s CO2 emissions, known as the Worldwide Harmonised Light vehicles Test Procedure (WLTP). The WLTP applied from 1st September 2017. All EC certificates of conformity or UK approval certificates for new cars show CO2 emissions figures based upon the WLTP test procedure, in addition to those based upon the existing methodology (NEDC).

Schedule 1 to Vehicle Excise and Registration Act (VERA) 1994 provides the legislation for annual rates of duty. The Finance Bill 2020 amends VERA to facilitate implementation of the WLTP regime.

VERA is also amended to exempt all registered zero-emission light passenger vehicles registered from 1 April 2017 from the Vehicle Excise Duty (VED) supplement for light passenger vehicles with a list price exceeding £40,000, when their licence is renewed on or after 1 April 2020.

Air Passenger Duty (APD)

The rates for APD are set out in section 30 of the Finance Act 1994. The rates of APD for flights to Band A destinations are unchanged. Band B destination APD is increased – in force 1st April 2021.

Climate Change Levy (CCL)

The main rates of Climate Change Levy (CCL) are amended with effect from 1 April 2020. The reduced rate percentages that apply to the main rates of CCL payable by participants in the Climate Change Agreement (CCA) scheme, are also amended with effect from 1 April 2020.

The main rates of Climate Change Levy (CCL) are amended with effect from 1 April 2021. The reduced rate percentages that apply to the Climate Change Levy (CCL) main rates payable by participants in the Climate Change Agreement (CCA) scheme, are also amended with effect from 1 April 2021.

[ Budget 2016 announced that, from 1 April 2019, rates would become subject to ‘rebalancing’ to reflect changes in the fuel mix used in electricity generation. The increase in rates, from 1 April 2019, also sought to recover the tax revenues lost by closing the Carbon Reduction Commitment Energy Efficiency Scheme.

Budget 2016 announced that, alongside the rates increase from 1 April 2019, the reduced rates of CCL for qualifying businesses in the CCA scheme would be amended so that participants did not pay more in CCL than they would have if the rates were increased in line with the Retail Prices Index (RPI) as in previous years.]

[ Budget 2017 announced that in order to ensure a better consistency between portable fuels in the off-gas grid market, the CCL rate for liquefied petroleum gas (LPG) would be frozen at the 2019-20 level in the years 2020-21 and 2021-22. For this reason, the reduced rate for LPG will remain set at 23 percent for the years 2020-21 and 2021-22.]

[ Budget 2018 reaffirmed the government’s commitment to continue with the rebalancing and the CCL rates with effect from 1 April 2020 reflect this.

Budget 2018 announced the amended reduced rates for 2020-21 would limit the impact on CCA scheme participants to an RPI increase similar to that in the year 2019-20.

Budget 2018 announced the amended reduced rates for 2021 to 2022 would limit the impact on CCA scheme participants to an RPI increase.]

Landfill Tax

Sections 42(1)(a) and 42(2) of the Finance Act 1996 to increase both rates of Landfill tax (the standard and the reduced rate) in line with inflation (rounded to the nearest 5 pence). The increased rates apply to any disposal of relevant materials made (or treated as made) at a landfill site in England or Northern Ireland on or after 1 April 2020. The increased standard rate also applies from the same date to any disposal of relevant materials made (or treated as made) at an unauthorized waste site in England or Northern Ireland. The standard rate will increase to £94.15 per tonne and the lower rate to £3.00 per tonne.

Carbon Emissions Tax

Part 3 of the Finance Act 2019 (which established the Carbon Emissions Tax – not commenced) is amended. If the Government decides to use the tax as its carbon pricing policy after the Transition Period, the tax would be commenced on 1 January 2021.

The UK remains in the EU Emissions Trading System (ETS) until 31 December 2020. As set out in the UK’s Approach to Negotiations, the UK would be open to considering a link between any future UK Emissions Trading System (ETS) and the EU ETS, if it suited both sides’ interests.

In the event that there is no link agreed between a UK ETS and the EU ETS the UK would introduce an alternative carbon pricing policy.

The Government is therefore preparing both a standalone emissions trading system and a Carbon Emissions Tax.

Budget 2020 announced that legislation would be included in Finance Bill 2020 to: provide a charging power to establish a UK ETS linked to the EU ETS or a standalone UK ETS; and update the existing legislation relating to Carbon Emissions Tax.

The Finance Bill 2020 amends Finance Act 2019 to ensure that the tax would be ready to be operational from at the end of the Transition Period, if needed.

UK permit holders operating stationary installations would be set a tax emission allowance and be taxed on all emissions that exceeded this allowance on a carbon equivalent basis. The first emissions reports would cover 1 January to 31 December 2021 and the tax would be collected by HMRC annually. It is intended that the bills relating to the first reports would be issued in summer 2022. The tax would rely on data supplied by taxable installations under existing (and continuing) emissions reporting arrangements.

The EU ETS requires participants to obtain permits to emit and then to submit a report annually providing details of their activities across the previous calendar year, from which their emissions across the period are calculated. All greenhouse gas emissions are calculated on a carbon equivalent basis. The data on emissions will continue to be collected following the UK’s departure from the EU.

Much of the existing legislation supporting the EU ETS would, under a Carbon Emissions Tax, continue to provide the legal basis for the monitoring, reporting and verification of emissions, and the permitting of installations.

The Finance Bill 2020 also allows HM Treasury to make regulations which provide for the allocation of emissions allowances in return for payment under any future UK Emissions Trading System (UK ETS).

These include the powers for HM Treasury to establish a UK Emissions Trading System (ETS). This means that emissions allowances can be auctioned in any future UK ETS, as defined in regulations.

The Finance Bill 2020 also allows for the potential implementation of additional market stability mechanisms in a standalone UK ETS. As set out in the consultation, this could include a Cost Containment Mechanism (CCM) to respond to any significant short- term price spikes and an Auction Reserve Price (ARP). If implemented, the ARP would set a minimum price for which allowances can be sold at auction to provide a minimum carbon price signal.

[A response to last summer’s consultation on the Future of UK Carbon Pricing will be published over the coming months.]

Packaging Tax

The Finance Bill 2020 enables HM Revenue and Customs (HMRC) to prepare for the introduction of a tax on plastic packaging before it is formally provided for in law.

[At Budget 2018, the Government announced the introduction of a new tax on plastic packaging which has less than 30% recycled plastic.]

Environment Bill (England & UK Brexit)

The Environment Bill returns to the Commons for Second Reading today. It is a slightly different Bill to 2019. Please reprise the posts I wrote in 2019, I summarise the changes (from those posts) below – I had got as far as Water – please find those posts in the Environment Bill category on this blog.

Targets (unchanged from 2019 Bill) – reprising because I didn’t set these out before – England only (targets are within the competencies of devolved legislatures)

– allow government to set long-term targets (of at least 15 years duration) in relation to the natural environment and people’s enjoyment of the natural environment via statutory instrument;

– require government to meet long-term targets, and to prepare remedial plans where long-term targets are not met;

– require government to set, by October 2022, at least one long-term target in each of the priority areas of air quality, water, biodiversity, and resource efficiency and waste reduction;

– require government to set and meet an air quality target for fine particulate matter in ambient air (PM2.5);

– require government to periodically review all environmental targets to assess whether meeting them would significantly improve the natural environment in England.

Note Clause 20 – Clause 20: Reports on international environmental protection legislation (this is unchanged from 2019 Bill, but I did not spell it out before) – this clause places an obligation on the Secretary of State to produce a report on significant developments in international environmental protection legislation, every two years, and lay it before Parliament. England only (competencies are within the competencies of devolved legislatures).

The scope and content of the report will be determined by the Secretary of State – see subsection (5). However, in a given reporting period it could cover: significant developments in the legislation of other countries that are mainly concerned with seeking to protect the natural environment from the effects of human activity or protecting people from the effects of human activity on the environment; legislation on the maintenance, restoration or enhancement of the natural environment; or legislative provisions around monitoring, assessing, considering and reporting and monitoring on these matters. The report will not extend to reviewing or considering the planning systems of other countries.

OEP (Office for Environmental Protection) – unchanged from 2019 Bill – see Blog posts on this – England only (establishing an OEP is within the competencies of devolved legislatures – Scotland indicated it would go this direction see its Environmental Strategy – see my post of yesterday).

Changes to UK REACH – unchanged from 2019 Bill

Waste, Air and Water appear unchanged from the 2019 Bill, and I have Blog posted before about these topics. Nonetheless, I will Blog again re Waste, because this is highly complex and a lot of new processes are announced. Please read the Explanatory Notes – here.

New Blog posts will be made about the rest of the Bill, please look out for those.

EU Single-Use Plastics Directive (UK alignment)

From 1st January 2021, the UK is outside the EU-UK Withdrawal Agreement transition period.

Northern Ireland – EU Law on goods (includes Environment) continues to apply.

Scotland – a ban on cotton buds is already in place

England – plastic straws, stirrers and cotton buds ban will come into force in April 2020

Wales – the Welsh government will consult

The EU Single-Use Plastics Directive was published in 2019, Member States have two years to implement, some aspects a bit longer – here.

The 2019 Directive mandates a reduction in the consumption of the single-use plastic products listed in Part A of the Annex, in line with the overall objectives of the EU’s waste policy, in particular waste prevention, leading to a substantial reversal of increasing consumption trends. The measures (put in place in member states) should achieve a measurable quantitative reduction in the consumption of the single-use plastic products listed in Part A of the Annex on the territory of the Member State by 2026 compared to 2022.

The 2019 Directive also mandates a ban on the placing on the market of the single-use plastic products listed in Part B of the Annex and of products made from oxo-degradable plastic.

The 2019 Directive also obliges Member States to ensure that single-use plastic products listed in Part C of the Annex that have caps and lids made of plastic may be placed on the market only if the caps and lids remain attached to the containers during the products’ intended use stage.

The 2019 Directive sets out further measures.